There is no hope of FFXIII this year, SE said they didn't want to release it right after DQ which is coming out late this year. And they are cutting the price again this year, look at their financial press release. They want to focus on not trying to be profitable this year, rather than competitive.

The PS3 will NOT overtake the 360 this year...the 360 is selling well (better than this stage last year) and the current 6.28 million gap is nigh on impossible for the PS3 to crack in the next 7 and a half months.

Next year however, the PS3 at some stage will move into second place. but mainly because of europe and japanese sales. North America is the one place where the 360 will have the edge over the PS3, and will until the 360 is either replaced by whatever Microsoft bring out next, or Microsoft spontaneously combusts and drops out of the market.

Dominate is such a strong word... No, I don't think it will. PS3 will definitely outsell X360 but not dominate. In order to dominate the PS3 needs a maximum price of $299, preferably less, and excellent exclusives. Needless to say, the price is still too high and the first big exclusive is coming next month... without a price cut.

Next year? Who knows; maybe. 2010? Probably too early to say but if MS doesn't come up with something miraculous then yes.  Compared to Wii it's hard to say. PS3 has a chance to compete with Wii in late 2009 or 2010 if everything goes fine.